Inflation hit seven-month low in June

Luxembourg recorded inflationary easing that surpassed eurozone average last month

Luxembourg’s annual inflation rate fell from 3.2% in May to an estimated 2.8% in June, according to the monthly “flash briefing’” from Eurostat, the EU statistics bureau.  

It is the biggest monthly shift recorded this year and brings inflation to a seven-month low in the Grand Duchy. Eurostat reported inflation of 2.1% in Luxembourg for November last year, but it jumped to 3.2% in December and has remained at or above 3% ever since. If accurate, the June data represent a welcome step towards the target inflation rate of 2%. 

Across the wider eurozone, inflation eased slightly in June to an annualised 2.5% – down from 2.6% in May.

Slovenia, Portugal, Ireland and Croatia also saw significant drops in inflation, while Belgium, Latvia and the Netherlands saw the biggest rises. 

All items saw prices rise last month, a trend which started in April when energy prices across Europe stopped decreasing after the price spike of 2022. All areas showed a rise of 0.1 percentage point or less, with the exception of unprocessed food, which saw annual inflation of 1.4% in June, down from 1.8% in May.  

The biggest inflationary pressure last month remained in the services sector, where prices were an average of 4.1% higher in June than the same time last year. The rate was also 4.1% in May. 

The flash briefing uses early data to provide a picture of inflation in Europe. It is published by Eurostat at the start of each month ahead of more complete data released in the middle of the following month. The flash briefing tends to be quite accurate. Luxembourg’s Statec statistics bureau also presents inflation figures each month, using slightly different methodology. 

https://www.luxtimes.lu/businessandfinance/inflation-hit-seven-month-low-in-june/15113267.html